Amazon Becomes World’s First Public Company to Lose $1T in Market Value(bloomberg.com)
bloomberg.com
Amazon Becomes World’s First Public Company to Lose $1T in Market Value
https://www.bloomberg.com/news/articles/2022-11-09/amazon-hits-unwelcome-milestone-with-1-trillion-in-value-lost
14 comments
Unfortunately, buying anything from Amazon as a retail customer feels like playing a game of roulette these days.
Amazon has largely become Chinese crap in American warehouses
To be fair, that's also true for Walmart and co.
And still a price/earnings ratio over 70, and no dividend in sight.
What exactly to people imagine they're buying when they plunk down money for shares in this company?
What exactly to people imagine they're buying when they plunk down money for shares in this company?
They imagine they're buying into a company that will start paying dividends once it stops seeing further areas of massive growth.
But for right now, they're quite content for Amazon to be e.g. reinvesting its profit into things like its own last-mile delivery service, for starters.
Once Amazon becomes more popular than UPS, Kroger, Walgreens, and probably five other companies in their respective markets, then it'll be time to open the dividends tap. But that doing it now would be throwing away money, sacrificing future profit for present.
I'm not saying I do or don't think Amazon is going to succeed in these things, but I do think that is absolutely what people invested in Amazon believe they're buying.
But for right now, they're quite content for Amazon to be e.g. reinvesting its profit into things like its own last-mile delivery service, for starters.
Once Amazon becomes more popular than UPS, Kroger, Walgreens, and probably five other companies in their respective markets, then it'll be time to open the dividends tap. But that doing it now would be throwing away money, sacrificing future profit for present.
I'm not saying I do or don't think Amazon is going to succeed in these things, but I do think that is absolutely what people invested in Amazon believe they're buying.
A future monopoly that can raise prices at will. They're making a bet that government will not function.
Long-term capital gains?
Non-speculators believe Amazon can increase prices by 1% and make a killing.
I am pretty convinced Amazon the stock is going to be a big bargain within the next couple of weeks. At somewhere around $700-800B it’s going to be less than intrinsic. These are global enterprises with significant TAM in a world where more than half of the population will experience significant increase in standard of living in the next decade or two. All they have to do is hold market leaderships as monopolies.
Protectionism will likely prevent that.
Watching Amazon, Twitter and Meta these last few days has almost given me "death by Schadenfreude".